Competitiveness and environmental performance in Spanish small and medium enterprises: is there a direct link?

• Published in: Journal of cleaner production Vol. 101; pp. 26 - 37
• Main Authors: Larrán Jorge, Manuel, Herrera Madueño, Jesús, Martínez-Martínez, Domingo, Lechuga Sancho, María Paula
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 15.08.2015
• Subjects: Competitiveness; Environmental performance; marketing; Relational marketing; small and medium enterprises; Small and medium-sized enterprises; Spain; stakeholders; structural equation modeling; Structural equations; Sustainability; Spain; Relational marketing; Structural equations; Small and medium-sized enterprises; Environmental performance; Sustainability; Competitiveness
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2015.04.016

The increasing social concern about the protection and improvement of the environment has transformed environmental commitment into a new strategic via channel through which to achieve competitiveness in firms. Nevertheless, to date, limited research on this subject has focused on small and medium enterprises. This study addresses this gap by shedding light on the relationship between environmental commitment and business performance as well as their relationship with two other strategic variables: relational marketing and image. From a sample of 481 small and medium firms in Southern Spain and using structural equation modelling, different cause–effect relations were analysed. The results suggest that environmental performance has a positive, direct and significant influence on competitive performance as well as the mediating effects of image and relational marketing. In this regard, this paper offers new empirical evidence of how firms that improve their environmental engagement generate a positive interaction with their stakeholders. An improved environmental performance encourages the appearance of positive reactions for any company's image and its competitiveness. Some of these environmental practices are provided according to their strategic relevance. •The environmental and competitive performance relationship has been analysed.•Structural Equation Modelling has been used on a sample of 481 SMEs.•Environmental practices contribute to increase competitive alignment.•Image and relational marketing are confirmed as mediating variables.•Stakeholders' perceptions are essential for a strategic environmental performance.